GrowthAces.com trading position on the USD/CAD: Long at 1.0940, the target is 1.1050 and stop-loss is 1.0890.
- A stronger manufacturing sector boosted Canada's industrial capacity use to 82.7% in the second quarter of 2014, the highest level for seven years.
- The manufacturing sector operated at 82.0% of capacity, up 1.0 pp. from the first quarter. The transportation equipment manufacturing industry rose 3.9 pp. to a record high 93.7%. The electric power generation, transmission and distribution's industry capacity use went down by 2.8 pp. to 85.7%. The rate for the oil and gas extraction industry edged up by 0.2 pp. to 88.0%.The rate for the oil and gas extraction industry edged up by 0.2 percentage points to 88.0 percent.
- Despite quite poor macroeconomic calendar in the American session yesterday (only Canadian Q2 capacity utilization and US wholesale sales) we had strong movement on the USD/CAD. The USD/CAD ended the session at 1.0935.
- We used the dip to go long at 1.0940. The target of GrowthAces.com for the USD/CAD is 1.1050 and stop-loss at 1.0890. The loonie is depreciating in the European session. The USD/CAD broke above 1.1000.
Significant technical analysis' levels:
Resistance: 1.1032 (high Sep 9), 1.1053 (high Apr 23), 1.1078 (high Mar 28)
Support: 1.0934 (low Sep 10), 1.0923 (30-dma), 1.0918 (10-dma)